It’s easy to be confused by the different interest rates and fees that can be charged to your credit card account. Below, we’ve listed the terms you’re likely to see and explained what these rates and fees mean for you.
APR is how much it’s likely to cost you to borrow money over one year. You'll see it as a percentage.
It’s not just about the interest you’ll pay. APR factors in both interest and any fees that are automatically charged to your account. This gives you a good idea of the overall cost and is useful if you’re comparing credit cards.
APR stands for annual percentage rate.
Interest is the cost of borrowing money. The amount of interest you’ll pay is worked out as a percentage of the money you borrow – this percentage is called an interest rate.
Interest rates can vary depending on how you use your credit card. There are four types:
A promotional rate is a low or 0% interest rate offered for a set period of time. When this period ends, the standard rate will take its place. Promotional rates can be offered on balance transfers, money transfers and purchases. These offers can save you money, but look for what suits you and check if fees apply. For example, you may still get charged a fee for a balance transfer that has a 0% interest rate.
Fees are charged to your credit card as either a percentage of a transaction or as a default charge of £12. Here are the most common types of fee you’ll see on Halifax cards:
Have you had a default charge?
If you’ve missed a payment or gone over your credit limit, there are steps you can take to get back in control.
If you’re struggling to make your credit card payments, please let us know.
Our trained advisers can give you guidance on paying off your credit card debt. We can talk to you about payment options and we may be able to offer a more affordable plan based on your personal circumstances.
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We want you to find a product that's right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.
To find out more you can read the statement of responsibilities, which details what's expected of us, the lender and you the borrower.